Glencore has agreed to buy a 49 per cent stake in coal mines in the Hunter Valley region of Australia for $1.1bn (£842m).
This is the latest twist in the firm's battle with China's Yancoal over Rio Tinto's Coal & Allied unit, which Rio shareholders voted to sell to Yancoal in June.
Glencore, the world's largest exporter of sea-traded thermal coal, has been after Rio's Hunter Valley assets for years with the intention of blending Rio's Australian coal assets with its existing operations in the area.
Today, the company said it will buy a 16.6 per cent stake in the Hunter Valley Operations from Yancoal and 32.4 per cent from Mitsubishi and form a joint venture with Yancoal to run the mines.
Yancoal will keep a 51 per cent stake.
According to the announcement, Glencore will pay a 27.9 per cent share of $240m in non-contingent royalties over five years and subscribe to $300 worth of shares Yancoal is selling as part of a capital increase to fund its deal with Rio.
Glencore expects the transaction to close within six months.